Darling Ingredients Surges on California Proposal
Published: August 13, 2024
Darling Ingredients experienced a significant rise in its stock, peaking at 16%, as California proposed limiting the use of seed oils, like soybean and canola, in green diesel to a maximum of 20%. This would advantage Darling and other companies that utilize alternative feedstocks, such as used cooking oil. The proposed cap is part of California's low-carbon fuel program, but it is expected that the regulation, if approved, would not be implemented until 2028. Darling Ingredients is already a notable player in the renewable diesel sector through its partnership with Valero Energy, ranking 30th among North America’s largest private carriers.
In the transportation sector, the shift towards greener fuel alternatives is crucial for reducing emissions and meeting regulatory targets. The proposed limitation on seed oils not only enhances the viability of companies like Darling, but also reflects a broader trend of seeking diverse and sustainable feedstocks. As the industry adapts to these changes, it could stimulate innovation in biofuel production and sustainability practices, helping to position the transportation sector in alignment with environmental standards and consumer expectations for greener solutions.